According to the LSE, the US exchange's offer of GBP12.43 per share in cash represented a premium of just 2% over the market price at close of business on November 17, and therefore failed to reflect the business's "unique strategic position, powerful earnings and operational momentum".

On 8 November 2006, the LSE posted record interim results for the six months ended 30 September 2006 with operating profit up 60%, and adjusted earnings per share up 54% on the comparable period to September 2005. The LSE said that it also continues to show strong growth, with average daily order book bargains of 331,000 for October 2006, up 45% compared to October 2005.

Moreover, the company stated that in the year to October, GBP22.3billion (US$42.3 billion) was raised through IPOs on the LSE, 96% more than the same period in 2005 and more than any other exchange so far this year, underlining its position as the world's primary listing venue.

“Given the Board’s unanimous view of the final offer from Nasdaq, I have rejected Nasdaq’s request for a meeting," Chris Gibson-Smith, LSE Chairman announced on Monday.

“We believe Nasdaq’s final offer fails to recognise the outstanding growth record and prospects of our group on a standalone basis, let alone the Exchange’s unique global position," added Clara Furse, the LSE's Chief Executive.

Nasdaq has been courting the LSE for some time, and has recently been increasing its stake in the London company. However, the LSE has consistently shown little desire for a tie-up with the technology-laden exchange, having rejected previous offers.

The LSE's rejection also makes it likely that NYSE-Euronext will become the first transatlantic stock exchange when the two businesses merge in the first quarter of 2007, subject to shareholder approval.